Government to introduce fortnightly sugar allocation
The Indian government is transitioning from a monthly to a fortnightly sugar allocation system to improve market monitoring and prevent artificial shortages. Mills must now dispatch sold sugar within one week of allocation to ensure better supply chain transparency.
Why it matters
This policy shift aims to stabilize sugar prices and prevent hoarding by mills, directly impacting domestic food supply and inflation management.
The Centre has decided to introduce from September fortnightly sugar allocation system replacing the existing monthly quota system.
According to an official press release, the mills will be required to sell at least 40 % of the allocation in the first week and remaining quantity in the succeeding week.
The statement said that physical verification of sugar stocks at the mills revealed that many mills were holding stocks more than the declarations made in the monthly returns submitted to the government. Some were found short selling - selling less sugar than the quantity allocated to them under the monthly quota. It was also found that in some cases, sugar sold by mills at the beginning of the month was dispatched or lifted by buyers only towards the end of the month.
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